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How crypto’s electoral clout is reshaping Washington’s regulatory landscape
According to James Murphy, the repeal of the SEC's 'Ridiculous rule' SAB 121, which passed both chambers of Congress, shows that officials understand 'There's one thing that elected officials love more than anything, and that's getting reelected.' This suggests that elected officials are responsive to the growing constituency of crypto supporters.
Rob Nelson wonders if meaningful change will come from 'regulatory process,' 'electoral change,' or 'consumer driven' pressures. James Murphy suggests that electoral change, such as the replacement of Senator Sherrod Brown with Senator Tim Scott, can have a significant impact on crypto regulation.
According to Rob Nelson, 'You can replace the head of the SEC, but you can't replace Elizabeth Warren,' suggesting that longstanding political figures may have a significant influence. However, James Murphy notes that the crypto industry's political engagement and consumer-driven momentum can also shape the regulatory landscape.
James Murphy predicts comprehensive legislation will be passed in 2025, with key roles played by 'David Sacks' and the heads of the 'CFTC and the SEC.' He suggests that this legislation will balance innovation and investor protections.
Crypto's regulatory landscape is evolving and is increasingly tied to electoral outcomes, reflecting how both policy and innovation shape the sector's future. According to James Murphy, the crypto industry's political engagement has made a significant impact, raising 'somewhere on the order of 200 million' in the last election cycle.
Crypto’s evolving regulatory landscape is increasingly tied to electoral outcomes, reflecting how both policy and innovation shape the sector’s future.
Roundtable anchor, Rob Nelson, and James “MetaLawMan” Murphy, Attorney, discussed whether entrenched elected officials, shifting public sentiment, or consumer-driven momentum will ultimately set the tone for bitcoin and broader cryptocurrency adoption.
Nelson questioned the influence of longstanding political figures, stating, “You can replace the head of the SEC, but you can’t replace Elizabeth Warren." He noted that Jerome Powell’s acknowledgment of bitcoin as a “real currency” reinforces the importance of regulation, yet wondered if meaningful change will come from “regulatory process,” “electoral change,” or “consumer driven” pressures.
Murphy pointed to the crypto industry’s political engagement, saying it “Got together and made quite an impact in this last election cycle” by raising “somewhere on the order of $200 million.”
He highlighted replacing Senator Sherrod Brown— aligned with Elizabeth Warren —with someone “open-minded about crypto" in Sen. Tim Scott and noted that the repeal of the SEC’s “Ridiculous rule” SAB 121 (Staff Accounting Bulletin No.121) passed both chambers of Congress, showing officials understand “There’s one thing that elected officials love more than anything, and that’s getting reelected.”
Looking ahead, Murphy predicted comprehensive legislation “passed in 2025” with key roles played by “David Sacks” and the heads of the “CFTC and the SEC.” These changes, he suggested, will balance innovation and investor protections, proving that when political tides shift, crypto’s regulatory framework can evolve to meet the demands of a growing constituency.